Public-sector wage freeze doesn't violate workers' Charter rights: Manitoba government

The Manitoba government says it's within its rights to impose a two-year wage freeze on workers, in a statement of defencerebutting a court challenge launched by public-sector unions.

ThePublic Services Sustainability Acthad been met with fervent opposition from labour groups, who argue the legislation infringes on their right of association under the The Charter of Rights and Freedoms.

Bill 28 would freeze public sector wages for two years aseach collective agreement expires, followed by 0.75 per cent in the third year, and one per cent in the fourth.

The 15-page statement of defence filed Monday in the Court of Queen's Bench argues the provincial governmentis within its constitutional and legislative rights to impose the bill.

• Manitoba unions make last effort to stop contentious labour bills
• Wage freezes coming for Manitoba's public servants, doctors, nurses

The Manitoba Federation of Labour, along with over two dozen labour unions, launched its court challengein July, asking the Court of Queen's Bench for an injunction against the bill and a declaration that the wage freeze is unconstitutional.

Monday's court filingrejectsthat notion, arguingthat the province's high deficit, rising expenditures and increasing debt servicing costs give the governmentthe legislative right to enact laws dealing with the "labour relations and fiscal matters that it determines is in the public interest."

The statementoutlinesseveral steps the governmenthasallegedlytaken to ensure the bill does notinfringeon collective bargaining or workers' rights under the Charter:

• It does not alter existing collective agreements
• Permits bargaining to continue on other issues such as working conditions, health and safety and job security, including no-layoff clauses
• It allows for an increase in wages "if real savings can be realized," such as addressing overtime costs
• protects the right to strike
• It is limited to a maximum of four years
• Permits the Lieutenant Governor in Council to exempt persons or classes of persons from the operation of the legislation

Unions reviewing the documents

The court challenge was launched by a collection of public sector unions,includingthoserepresenting government workers, nurses, teachers and others more than110,000 workers and over two dozen unions in total.

The unions have alleged theywere not properly consulted prior to the bill's introduction, which the government denies.

The statement of defence outlines meetings in January and February, prior to the introduction of the bill,where the government met with union representatives and presented an update on the province's finances.

In a February meeting, it is allegedthegovernmentgave Manitoba Federation of Labourpresident KevinRebecka run-downof thepossible legislative approaches for public sector wages:reopening collective agreements, extending existing agreements, mandating wage settlement amounts, changing merit increments, changing pensions and imposing a reduced work week.

In a subsequent meeting, the government alleges the union offered alternatives to this, including reviewing its tax policy regarding exemptions, rates and tax brackets but offered nothing to quell labour costs aside from an idea to create a working group to examine opportunities to reduce overtime wage costs.

Bill 28 was introduced the next month.

"We're very disappointed the government's not willing to negotiate at a bargaining table. They're choosing the heavy-handed approach of legislation to get their way,"Rebecksaid earlier this year.

It reached royal assent in June but has yet to be proclaimed.

The Manitoba Federation of Laboursaid in a written statement that it and partners are still reviewing the court documents, butintendto file "further evidence soon."

'Controls growth in wages'

The government also statesit has no legal duty to consult regarding the passage of legislation noting unionswere heard on May 8, 2017 during the legislativecommitteehearings on Bill 28.

The response alsosays there does not need to be an economic crisis forlegislation to be introduced.It estimates that labour costs are 73 per cent of the health budget in 2016-17 and in total $9.6 billion per year is paid through wages, benefits and compensation to the province's 123,000 public sector workers.

"Itmerelycontrols growth in wages sogovernmentcan reduce thedeficitover time," it states.

"Thebenefitsobtainedthroughthe (bill) faroutweighany detrimental impact suffered by thePlaintiffsas a consequence of thetemporallyrestricted ability tonegotiateasalary beyond that provided in the statute."